Start-up cycle: how it resembles our life


 An infant elephant is tied up with chains. He tries very hard to break free but fails. Every day he wakes up with a new hope, toils day long and sleeps with disappointment and failure. This continues for a while and gradually he gives up. He accepts that chains are unbreakable. With time, he grows into a big powerful elephant, still tied to the same chain. Today he is so powerful so as to break-free within seconds but he has given up.

The same is true with our lives. As a child, we were inquisitive and creative but cease to be creative and question the society doctrine as we grow up. Still wondering how this story is related to start-ups? Infant elephant is a startup which tries too many things initially but fails in want of power, resources and network. Chains are the constraints of resources. In the beginning, resources are limited hence many venture might fail in want of resources. But slowly the reach of company grows. It gradually grows into a successful enterprise. Some of its failed idea can change the world today. But start-up has been conditioned to believe that the idea lacks the spark.

The point that I want to drive home is: remain creative and inquisitive as your start-up grows. You are not the same as you were a decade back; the same is true for your start-up. Just because you failed once, doesn't imply that you would fail every time or just because an idea clicked in yesteryears doesn't guarantee its success every single time. 

Time, person and place are major factors which affect the dynamics of a start-up. You need to identify the idea whose time has come. Facebook might have failed miserably, had it cropped up a decade earlier as Internet had not penetrated to the masses then. So you need to be at right time with right persons at right place to fancy your chances of success. Time suggests the state in life-cycle of start-up you are in. It is important that you know your limitations as an infant elephant and recognize your power as you grow up. Person refers to the team that you have and persons you interact with including your customers, VCs and investors. Place includes your physical location and external environment you deal with. Clearly time, person, place for start-ups change drastically over years. Hence, don't stay chained up, break free. try out, experiment, fail, fall, stand and try again!!!

06:43 | Posted in , | Read More »

8 popular myths about start-ups

For those who have heard of startups only in magazines and success stories, it is a black box. It is a mystery word, with no definite path, no entrance exam to gauze success, no thumb rule to triumph. The more you read and hear about startups, the more confused you would be. Unless you get your hands dirty, you will have as little idea about startups as your son or a corporate bitch next door. Here we would strive to demystify some of the popular myths that people have-

#1. Wanting to make money is not a bad reason to startup
I have often heard experts saying  " If you are starting or joining a startup to earn a good wage; you are at a wrong place." This statement is often misinterpreted and is the greatest myth I have ever come across. What it means is, single eyed devotion to money is not good for startup and thats very true. What it definitely doesn't mean is wanting to make money is bad reason to startup. In the end, success of your startup is gauzed by your company's turnover and cash-flow, so unless you are money oriented, you will never make it big. So in nutshell, wanting to make money is not bad but expecting a windfall just in the starting is too Utopian.

#2. Profit is not the only driver to decision making
Having said that wanting money from startup is not bad, I must reiterate that money or profit should not be the key driver of your startup. These two myths are often taken to be contradicting and hence we follow one and throw the other out of doors leading to downfall. Profit is one of the many parameters that must be evaluated before making any decisions but is not the only parameter. Brand value, customer loyalty are as important a parameter if not more.

#3. Its not just about idea or product, but about how you deliver
Not every unique idea or super-awesome product would convert into grand startup. There is a huge difference and one doesn't guarantee the other. Idea or product is most pivotal, but how you present it makes all the difference. How approachable you are, how good is your customer relations, how well is your on-line presence, how efficiently you tackle generic problems so as to ensure quick service without taxing the team are some of the vital questions that constitute the complete package that you present to your consumer. Most of the times, startups are so busy polishing their product, that they ignore the complete package and hence are not popular among customer.

#4. Its not about how many lives you affect, its about how deeply you affect few lives
One common myth around entrepreneurs is that more are the people affected by a startup, the better it is. In fact I have seen many startups flashing the number of potential customers, their idea can spread to. But these are those which fizz out like a flash in the pan. If I have an idea that improves a million lives by an iota and another idea that helps a thousand people but in significant way, I will surely opt for the later. Because:
  •  In todays competitive market, if there can be a product touching million lives, it already exists. Someone must have come up with it, may be you are unaware. So ensure that your idea is unique before taking a step forward.
  • If you product is not creating significant difference, chances are fare that you might be forgotten. Because you are not creating a dependency, hence your penetration to market is less and chances of saturation are higher. Any product with a better offer can displace you in a jiffy.
  • If your product creates significant dependency, you create a loyal customer base, which comes back to you. Moreover they become your flag bearers, promoting your product. 
 #5. Give more reasons to remember
Today, marketing is all about being in your customers sub-conscious mind. If product, is the only reason why your customers know you, you might be forgotten soon. The trick is to give as many reasons to your customers to remember you as possible. The more the better. So that even if they forget one, they remember the other. Hence you obtain a perpetual space is market. The reason can be diverse as- a story, a cause that you endorse, a contest, a campaign etc.

#6. There is nothing called failure in startup
I have seen person with great entrepreneurial streaks, dreading startup for the fear of failure. But as a matter of fact, there is nothing called failure in startup. Either your venture is successful or you grow in your experience. So called failed startup can teach what successful startups would never touch. Hence you can start afresh, bigger and better every time

#7. Just because you hate your job, don't startup
Having been in corporate life for a while, I have seen 99% of people loathing what they do and the rest don't care. But just because you hate your job, don't start up. Chances are very bleak that this dissatisfaction can ever lead you to venture out. And if you ever do, you shall fail miserably. Passion for an idea, for a product, for a change is what drives great startups and successful companies alike.

#8. Most people leave bosses, not the job
Its true that as a startup retaining employees is difficult. They tend to jump on to bigger players as they get experienced. But attributing this to your company's age or brand name solely would be unjustified. Most employees leave their bosses, not the job. What it means is, the manager matters more to an employee than the employer itself. So be a good boss. Rather than taking all the decisions yourself, involve others, take their opinion. After-all, its better not be in drivers seat for a while.

09:18 | Posted in , | Read More »

10 roadblocks to your Startup's Success

Start-up is the new buzz-word. Every other guy is setting up his own venture or expanding his family business. As number drives number, more startups mean further more people being motivated to taste entrepreneurship. Most of these startups are put together in a jiffy and break down like a house of playing cards. So before you start your venture, plan it well. Ofcourse a well planned venture may not always florish, but chances of failure can be minimized. Even if you take care of every thing that you can think of; these are the roadblocks that you can't evade.

 1)You end up with something that you never started
There is a huge gap between management theories and harsh realities of life. While you might validate your idea or product thousand times and ensure that it conforms to all the theories, it never works in real life. You will always end up with one assumption which is never true. This leads to remodelling and restructuring. So, choice is yours, either you stick to your original plan or be flexible enough to accommodate consumer feedback. The problem is ; if you change, you end up with something drastically different than what you started with. But the real problem is; if you don't change, your solution is not solving your consumer's problem. Hence you will end up with no consumer. So change is a good sign, it signifies that you are on right track. Startup in itself is a iterative process which should always evolve.

2)Building Initial Team is Difficult
Building the initial team is the most tedious task up your sleeves. You will have two major challenge while picking up the team
  • To identify the right set of skill sets needed for your start-up. You have to make sure that the composition of team is perfect, at the same time, with limited resources, you don't have the liberty of 'extras' in your team.
  • To convince people to join you. Once you have identified the right talent that you need, you would have the herculean task of convincing them to join you. The problem is acute because most of them would be paid better and your start-up wouldn't have reputation enough to ensure job security. The key to this is to spread your passion so that your team is as passionate and motivated as you are.

While hand picking your team, don't run after big names in the industry because they would have a heavy price tag attached with them, which can throw  your budget off balance. Its good if you can get industry experts on board but don't rely so much on them that if they refuse in the end, your start-up goes for a toss.
3)Its hard to convince your family and friends
Try telling your parents that you are opting out of the finance firm that you were placed in and would rather start something on your own and you should expect -"Are you ****ing crazy?". Today if I tell my friends that I am thinking of a start-up they rather feel that I am unemployed and am trying to keep myself busy. Even if your start-up is fairly successful, most of your acquaintances won't believe in you unless you are listed in stock exchange. It is hard to make your family and friends believe in you, and don't even try that. You would be banging your head against wall. All you need is to believe in yourself and someday your friends would subscribe to your IPO and subsequently believe that you are doing something wonderful :)

4)You earn less than your friends and neighbours
In early stage startups, you would always complain that you earn less than your friend or neighbour and that is a fact you have to live with. If you are starting something or joining a startup to earn a good wage; you are at a wrong place. Startup is typically a place you have to work harder and are paid lesser in return. Startup is not about money, its about passion; money is a byproduct. In nutshell, passion can't pay for foods, but trust me, it can kill your hunger.

5)Deadlines are never met
One crucial lesson that you would learn in a while is no matter how well prepared you are, deadlines are never met. To me, deadline in itself has negative implications. 'Either you complete this assignment by today or you are dead '. I would rather refer to these as 'checkpoints'. Its fine, if deadlines are not met. In fact it depicts that we are still human.

6) No Magic Wand
There is no one customer or one big deal that can make you successful. Success is a gradual process. Every single day or deal is a one small step towards that mighty goal. The overnight success is no untrue outside the eutopian world. So don't expect that moment you launch your product, world would go insane.

7) Employee Retention
As we have discussed, in startup you work harder and are paid lesser. So chances are fair that your employees could look for better job opportunities once they have enough experience. So trick of the trade is to continuously evaluate your employees and reward them as per their skill and experience. No matter how hard you try, as an early stage startup, your remuneration can never compete with industry standards. So you should make sure that your emplyees feel attached to the startup and have a sense of ownership.

8)Expand team when business expands
You are no superhero. As your business expands, so should your team. You must include more partners and employees subsequently. If you don't expand your team, you would over stress yourself and ultimately hamper the progress of your startup.

9)Customers can be over-demanding
With new kid on the floor, customers can be over-demanding. They would customize the service or product as much as possible. While one consumer may want something taller, other might demand smaller ones. The key to success lies in address each customer individually. Even if you don't agree to their demands, few sweet words can do the magic. 
10) Too much to offer, but is anyone listening
Most of the startups that I have come across, have too much to offer. They offer unique products and services and too many of them. The focus should instead be more on visibility. Instead of launching a line of product, first launch one unique product, make it known to target consumer, create a brand value. And then use this platform to showcase other products.

Stay tuned to TricksWork for all latest updates.....tricks do work!!!

19:39 | Posted in , | Read More »

Why Product based start-ups should not roll out services to sustain

Planning to set-up a product based start-up, not sure if you could get enough funds!!! Well this situation is not uncommon to most of us. In recent years, entrepreneurs have come up with a crafty solution to it. Most of the product-based start-ups roll out 3rd party support services to ensure cash flow, with which they support their product based start-ups. This concept looks viable superficially, but we at TricksWork would discourage such practices. But why so??

1)Product based start-up needs a dedicated team
Product based start-up needs a 24*7 dedicated team, a robust R&D and an able management. Moment we roll out support service to sustain; the dedication of the team is divided, R&D takes a back seat and management is overburdened.

2)Support Services have their own deadlines
If you provide 3rd party service support; you must adhere to given deadline. You might start with a dedicated team for you product based start-up and a separate team for support services. But if deadlines are not met, you will have to put your entire team to task. Hence the flow is badly hampered and your employees are overburdened.

3) Failed product and poor service 
You are caught in tussle between support services and product based start-up. Each have their own needs. And as an start-up it is not feasible to maintain adequate expertise and resources simultaneously for both. So compromise with one to push another and you end up with a failed product and a unsatisfactory service.

4)Lack of Vision
This would also indicate a lack of vision and confidence in your start-up and hence funds would be hard to come by. When you yourself are not convinced about viability of your product, how can you convince others?

5)Product Potential
You would be so busy meeting deadlines and optimizing your resources that your product would slip down the priority list and hence you would never realize the full market potential of your product. You will mess thing up.

So, if you are planning to set-up a product based start-up. A support service to sustain your start-up is a bad idea, get rid of it. The next big question that crops up - how do we support our start-up?

6)If you are not getting enough funds, you have not spent enough time
Today, funds are easy to get. If you have an idea, a prototype - that can create the difference. You will get as much as you want. So if you are not getting enough funds, it clearly means ; either your idea is not viable or you have not spent enough time on it. Go back, start with basics and make sure you cover these aspects before you approach any VC for funds-
  • Value Proposition: Your product must be adding a value ; i.e; it must be solving a real life problem. So if you are launching a product, first be convinced that your product makes life easier in some way.
  • Target Consumer: You must be clear as to what consumer base you are targeting-urban or rural, youth or old etc. 
  • Delivery Channels: You should primarily focus on two delivery channels-                               a)Product Distribution Channels                                                                                                          b)Advertisement Channels                                                                                                                 Product Distribution channel is easy to figure out but the real problem is to sync it with your advertisement channels. This vaguely means, can your advertisement channel create enough demand to compliment you Distribution channel and vice-versa. And most critical of all, do you have right advertisement channel to target your consumers. 
  • Pricing Model: You should have a clear understanding of your revenue streams. Pricing today is much more than just figuring out expenses and deciding cost per unit of your product. Today, you have to give incentives to you buyers to buy more, to buy frequently and to recommend the product to others. For all these, an apt pricing mechanism is very crucial.
Once you have figured out these, you are pretty much ready to deliver your product to consumers. But your start-up vision is still half baked. you ought to include
  • Competitive Edge: You must identify who your competitors are and why would consumers prefer you over existing solutions in the market. In the nutshell, your business must have an USP (Unique Selling Proposition).
  • Growth Options: You must have a clear vision of what your company would look like 10 years down the line. If you want to make it big, you should start early. You should create enough room to accommodate future expansions and growth.
If you have a vision and a product which objectively satisfies all the above requirement, your start-up will never be short of funds. Stay tuned to TricksWork for our next post on 6 points that can make any start-up successful.  

02:25 | Posted in , | Read More »

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